Blue Nile Shares Rise on March Traffic

According to online traffic research firm comScore Inc., Blue Nile recorded 595,000 unique visitors in March, Citi analyst Mark S. Mahaney observed in a note to clients. The 20 percent improvement follows declines of 14 percent and 18 percent in January and February, respectively.

"We view this as a positive datapoint, and we see slightly less risk to first-quarter estimates," Mahaney wrote, maintaining a "Hold" rating. He noted that Blue Nile's monthly traffic can be very volatile.

The analyst added that the number of units Seattle-based Blue Nile sold in the quarter could top his expectations, although an economic slowdown may have hurt its average order size. He also said Blue Nile stock lacks near-term catalysts.

Mahaney kept a $50 price target on shares. Blue Nile Inc. stock rose $1.14, or 2.3 percent, to $50.20 in afternoon trading Friday.